Category: Buying

Buying

Mortgage Terms A to Z

  • Adjustable rate:

An interest rate that that may change over the life of the loan, and the essence of an Adjustable Rate Mortgage or ARM. Some rates vary according to an established financial index such as COFI—the Cost of Funds Index—typically adding a set “margin” of percentage points.

  • Appraisal:

A report expressing the estimated value of a property based on a comparison of similar saleable properties. Also, the act of appraising a property.

  • Assumable mortgage:

A loan that can be transferred with a sold property to a new buyer.

  • Balloon payment:

A final lump sum payment, typically larger than previous payments, due at the end of balloon-type loan.

  • Collateral:

Property pledged as security for a debt, such as real estate that secures a mortgage. Collateral can be repossessed if the loan is not repaid.

  • Conventional loan:

A mortgage loan not insured or guaranteed by a federal government entity such as the Federal Housing Administration.

  • Deed:

A document that legally transfers ownership of property from one person to another. The deed is recorded on public record with the property description.

  • Deed of trust:

Used in some states, it serves the same purpose as a mortgage. It conveys “title” to a real estate property to a disinterested third (a trustee), who holds the title until the owner of the property has repaid the debt.

  • Escrow:

A third-party financial instrument to hold funds on behalf of the other two parties in a transaction. In a real estate transaction, if there are conditions to the sale such as passing an inspection, the buyer and seller may agree to use an escrow account. Once the conditions are met, the escrow transfers the payment to the seller and title is transferred to the buyer.

  • Fixed-rate mortgage:

A mortgage with payments that remain the same throughout the life of the loan. The interest rate is fixed (unlike an adjustable rate).

  • Good faith:

Refers to settlement charges paid by a by the borrower at closing. A Good Faith Estimate of the charges is required by The Real Estate Settlement Procedures Act.

  • HELOC:

Home Equity Line of Credit—usually a second mortgage allowing the borrower to obtain cash against the equity of a home up to a predetermined amount.

  • HUD:

The U.S. Department of Housing and Urban Development, created to address public housing needs, improve and develop American communities, and enforce fair housing laws.

  • HUD-1:

Also known as the “settlement sheet,” it itemizes all closing costs such as real estate commissions, loan fees, points, and escrow amounts.

  • Interest-only mortgage:

A mortgage in which, for period of time, the monthly mortgage payment consists of interest only. During that period, the loan balance remains unchanged.

  • Jumbo loan:

Also called a non-conforming loan, it is a loan above a certain dollar amount. In 2009, the amount for single-family homes in most states was $417,000. Above that limit, the loan is ineligible to be purchased by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac).

  • Lien:

A legal claim against a property that must be paid off when the property is sold. A lien is created when you borrow money and use your home as collateral for the loan.

  • Loan-to-value ratio:

Expressed as a percentage, the amount of the loan divided by the value of a property. For example, if you have a $120,000 mortgage against a $200,000 home, the LTV is 60 percent.

  • Mortgage:

The instrument used to pledge title to a property as security for repayment of a debt.

  • Owner-occupied:

Used to describe a home occupied by a borrower or a member of the immediate family as a primary residence—as opposed to a rental property. The distinction significantly affects mortgage rates.

  • PITI:

Principal, Interest, Taxes, and Insurance—the four elements of a monthly mortgage payment.

  • Points:

Mortgage industry synonym for “one percent,” typically of the principal loan amount. To pay an origination fee of two points on a $100,000 loan, for example, you’d pay $2,000 to the lender.

  • Quitclaim deed:

An instrument transferring ownership of a property, typically with no guarantee of an unencumbered “clear” title.

  • Realtor®:

A real estate broker or associate with an active membership in the National Association of Realtors®. Not all brokers are Realtors®.

  • Reverse mortgage:

An instrument used by senior homeowners age 62 and older to convert the equity in their home into a monthly stream of income.

  • Survey:

A measurement description of land prepared by a registered land surveyor. Typically it shows the property’s dimensions and its location relative to known landmarks, plus the location and dimensions of any improvements.

  • Title:

The evidence to the right to, or ownership of, property.

  • Title insurance:

A policy that guarantees the accuracy of a title search and protects against errors. Most lenders require the buyer to purchase title insurance to protect the lender against loss in the event of a title defect. This charge is included in the closing costs.

  • Underwriting:

The process of analyzing a loan application to determine the amount of risk involved in making the loan; it includes a review of the potential borrower’s credit history and a judgment of the property value.

  • VA loan:

A loan guaranteed by the U.S. Department of Veterans Affairs as a benefit to military veterans.

  • Warranty deed:

A legal document which guarantees that the seller is the true owner of the property and has the right to sell the property.

  • Yield curve:

A graph that compares long-term lending rates to short-term rates. Lenders “borrow short” at lower rates to “lend long” at higher rates. A “steep” curve spells bigger profits for lenders.

  • Zero-down mortgage:

A loan that finances 100 percent of the purchase price.

 

http://www.trulia.com/guide/financing/mortgages_101/mortgage_terms_a_to_z/

Buying

The Vote is In: Americans Place High Value on Homeownership

By an overwhelming margin, American voters strongly value homeownership and would oppose efforts to weaken or eliminate the mortgage interest deduction or diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages, according to a new nationwide survey gauging likely voters’ attitudes towards homeownership and housing policy issues.

“The American electorate is sending a clear message that owning a home remains a cornerstone of the American Dream and preserving a federal commitment to homeownership is essential to maintain a thriving middle class and get housing and the economy back on track,” says Neil Newhouse, a partner and co-founder of Public Opinion Strategies.

Conducted on Jan. 2-5 on behalf of the National Association of Home Builders by the Republican and Democratic polling firms of Public Opinion Strategies in Alexandria, Va., and Lake Research Partners in Washington, D.C., the comprehensive survey of 1,500 likely voters includes data from key political “swing areas,” including National Journal political analyst Charlie Cook’s swing House and Senate seats and Stuart Rothenberg’s presidential swing states. The survey, which has a margin of error of ±2.5 percent, is a follow-up to a similar national poll conducted last May.

The poll shows that three out of four voters—both owners and renters—believe it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership. This sentiment cuts across regional and party lines, with 84 percent of Democrats, 71 percent of Republicans and 71 percent of Independents agreeing with this statement.

Also, two-thirds of respondents say that the federal government should help home buyers to afford a long-term or 30-year, fixed-rate mortgage.

Moreover, 73 percent of voters oppose eliminating the mortgage interest deduction. These figures held firm across the political spectrum, with 77 percent of Republicans, 71 percent of Democrats and 71 percent of Independents against doing away with the mortgage interest deduction.

Meanwhile, 68 percent would be less likely to vote for a congressional candidate who proposed to abolish the deduction, a figure that was virtually identical across all party affiliations (69 percent of Independents and 68 percent of Democrats and Republicans).

A majority of voters are also against proposals to reduce the mortgage interest deduction, eliminate the deduction for interest paid for a second home, limit the deduction for those earning more than $250,000 per year, scale back the deduction for home owners with mortgages above $500,000 and do away with the deduction for interest paid on home equity loans.

“With the 2012 election season in full swing, candidates running for the White House and Congress would be wise to heed the will of the American voters, who have expressed broad support for government policies that encourage homeownership and oppose efforts to make it more difficult to get a home loan and to tamper with the mortgage interest deduction,” says Celinda Lake, president of Lake Research Partners.

Among the poll’s other key findings:

• 96 percent of homeowners are happy with their decision to own and 84 percent who are “underwater,” or owe more on their mortgages than their home is worth, expressed the same sentiment.

• 79 percent of home owners would advise a family member or close friend just starting out to buy a home, and 69 percent of those who are underwater on their mortgage would offer the same advice.

• 74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make.

• Homeownership and a retirement savings program are considered by voters to be their best long-term investments.

• 78 percent of respondents said that owning their own home is very important to them.

• Nearly seven out of 10 voters who are not currently home owners (68 percent) said it was a goal of theirs to buy a home.

• Job uncertainty and saving for a downpayment and closing costs are the biggest barriers to buying a home.

The survey findings are consistent with the results of other public opinion surveys. In a New York Times/CBS News poll conducted in June, 89 percent said that homeownership is an important part of the American Dream and more than 90 percent indicated that it is important for the federal government to continue the mortgage interest deduction.

According to a Pew Research Study conducted last March, 81 percent of respondents agree that buying a home is the best long-term investment a person can make and 81 percent of renters surveyed said they would like to buy a house.

“Even in a down housing market, homeownership remains a core American value, with the vast majority of citizens who do not currently own a home saying they want to buy a home,” said Bob Nielsen, president of the National Association of Home Builders and a home builder from Reno, Nev. “Those running for office in November need to understand that voters will not look kindly on any candidates who seek to dismantle the nation’s long-term commitment to homeownership.”

For more information, visit www.nahb.org/homeownershippoll [2].

http://rismedia.com/2012-01-14/the-vote-is-in-americans-place-high-value-on-homeownership/?utm_source=twitterfeed&utm_medium=twitter

Buying

Seminary Real Estate- New Listing

103 E MAIN St. Seminary , MS 39479  $169,900

Established, income producing restaurant with a hometown setting. Conveniently located on the corner of Old HWY 49 and Main St.

Call Crye-Leike  today for details on this property.

 

Buying

How To Save Money For Your First Home

More often than not, there will always crop up urgent needs like emergencies and the money that is intended for savings for your first home purchase would be used to resolve that problem. However, with a lot of individuals fascinated with all the good experiences that home ownership can bring; saving money for their first-home purchase is something that they want to accomplish. In line with this, many lenders are making home buying more appealing by offering home loans that require only ten percent deposit. For the first home buyers who also want to know something about property management, you can turn to some property managers for advice.

Compared to the previous practice of asking twenty percent deposit; this is absolutely a lot more advantageous for most first-time home buyers. With this having said, for sure many people would be glad to learn some effective ways that can help them save the money they will need to help them become a home owner too! So, here are three of the best ways that can help many people save money for their home buying dreams; say for instance their dream home from Smyrna homes for sale listings.

If buying your home soon is your top priority, you need to go back to the basics. This means living life simple minus the little luxuries you enjoy in life. For example, if you are used to traveling during weekends; definitely, cutting out this habit would help you save some money.  If you are used to call food delivery for lunch at work, preparing your own lunch would mean additional savings in your bank account too! Making simple but worthy sacrifices like these would help you reach your target sooner.

This means learning to differentiate your basic needs with your extra wants. You can start with saving on your electricity costs by using energy-efficient appliances and lighting at home. Instead of incandescent bulb, use fluorescent lights because it consumes less electricity without making your house look dim. It would also help if you would create a shopping list before you do your groceries. In doing so, you would minimize the chances of buying things or foods that you do not really need at the moment.

If you are really determined about reaching your savings goal, why not take a second or a part time job? It may seem time and effort demanding but sure enough, it would be an effective way to help you earn some cash that you can save for your home purchase goals. Saving money for buying your dream home may not be as easy as other think. However, it is also not impossible. With your patience and determination sprinkled with some practical choices, arriving at the money you need for the down payment of your dream home from Smyrna real estate, for example is something that can be done for sure.

http://finanzaslocales.com/uncategorized/how-to-save-money-for-your-first-home

 

Buying

Missed the Home Buyer Seminar? No Worries….

The next Home Buyer Seminar will be held  on  March 20, 2012 at 6:30, at the Crye-Leike office. Call now to reserve your seat!

Satisfied seminar  partipant:

“If anyone is looking at buying a home in the Hattiesburg area, the Crye-Leike team held a great Home Buyers Seminar. We highly recommend attending it. We learned a lot of great tips.”    Nina Wilson